Renting out a PPR for a year or two. Tax liability?

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whizzbang

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A friend of mine has a house for 10 years as her PPR. She is thinking of moving away for a while and renting out the house for a year or two. Her plan is to then some back and live in it again.

What are the tax implications on this? I guess she has to pay tax on the rent but how goes CGT work in this case?
 
She will be exempt from CGT on the first 12 months after vacating the property as her PPR but thereafter renting it will trigger some CGT liability on any future resale gain. For example if she lived in it for 10 years, rented it out for 2 years, came back and lived in it for 3 more years and then sold it then she would be liable for CGT on (2-1)/(10+2+3) = 1/15th or 6.67% of any capital gain (very roughly calculating in round years for simplicity). The Property Investment FAQ has more on the tax treatment of investment properties.

Property Investment FAQ

She will also need to register with the PRTB.
 
You say she is "moving away" for a while - would this move be abroad? If so, she will have tax liabilities as a non-resident landlord, and the tenants should withhold 20% of the gross rent and pay this over to the Revenue.

Is she moving abroad?
 
Domo said:
You say she is "moving away" for a while - would this move be abroad? If so, she will have tax liabilities as a non-resident landlord, and the tenants should withhold 20% of the gross rent and pay this over to the Revenue.

Is she moving abroad?
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Or she can have an agent, family member collect the rent in Ireland thus taking responsibility for rev away from tenant?
 
Help on this topic please. After numerous enquiries to vaious bodies (cant get my solicitor as he is away) can anyone work out what roughly the amount of stamp duty would need to be paid on the following scenario:

Bought Apt 2003 as second time buyer to be my PPR costing €201,000. I paid 4% stamp duty then. If I rent it out now how much Stamp duty am I liable to pay?

Any help/guidance greatfully accepted.

thanks a million.
 
ClubMan said:
I thought that the first 12 months after vacating one's PPR was exempt from CGT even if it was rented out?
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No, this is not the case. There is a concession where the last 12 months of ownership may be treated as a period of occupation even if the property was vacant or rented out during that period but this is irrelevant to the above example where the householder intends to reoccupy the property prior to eventual sale.
 
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